The construction industry is one of the most dangerous industries. Additionally, those who seek construction services tend to pay a high price for quality and efficiency. If contractors do not perform their job to the client’s standards or if their work results in damages or injuries, the client may file a liability claim. Construction companies and contractors must understand what actions can result in liability claims to prevent them. Comprehensive contractors general liability insurance can help mitigate the risks.
Common Liability Claims Contractors Face
Construction defects may arise because of the materials used, the workmanship, or the overall design. Understanding the common liability claims that contractors face can help you determine the right general liability insurance for a contractor.
Poor Workmanship
The construction company may be liable for mistakes made by the contractors. For instance, if a contractor does not install plumbing properly and it causes leaks, mold growth, and other water damage, the property owner could file a lawsuit for damages caused by poor workmanship. Any defect due to the quality of workmanship can result in a liability claim.
Poor workmanship also includes incorrect installation and substandard maintenance and repair.
Failure to Meet Building Codes
Construction negligence, particularly when it comes to following building codes, can threaten the occupants’ safety and affect the building’s structural integrity. Contractors must abide by all building codes and regulations.
Use of Substandard Materials
Clients expect construction companies to use quality materials when performing a job. Suppose the contractor estimates how long a product will last, but the inferior materials do not last as long as intended or result in other damages. In that case, the client can raise a claim against the company.
Faulty Equipment
Faulty equipment can cause various issues on the job site. For one thing, defective equipment may make it impossible to perform a job and result in delays. It may also cause injuries to contractors or bystanders.
Improper Design
If the architects involved with a project produce a flawed design, it can cause massive problems for the client. Some consequences of poor design include inadequate structural support and drainage.
Contractors Insurance as a Safeguard
Contractors general liability insurance protects against various claims by providing coverage to fight the claims and to pay awards for construction defects, injuries, and equipment breakdown. Contractors insurance may benefit companies in various industries, including carpentry, concrete construction, fencing contractors, street cleaning, and residential plumbing.
A comprehensive risk management plan should include insurance policies tailored to individual companies and strategies to prevent claims. Companies also should provide thorough training for all contractors and maintain high standards for all building materials. Proactive strategies can help companies reduce the risk of liability claims.
Protect Contractors With Contractors General Liability Insurance
Construction companies tend to have more liabilities to worry about than many other industries. When protecting construction companies and their contractors, comprehensive contractors general liability insurance helps. Work with Commodore to make sure your contractor clients have coverage.
About Commodore
Commodore Insurance Services, Inc. (Commodore) is a California corporation that operates as a Managing General Agency and Program Manager. Since incorporating in 1990, Commodore has developed an expertise in the production and underwriting of insurance products for businesses across the West Coast. Our focus is on providing top-level insurance products to our clients while striving to make it easy to do business for our brokers. Try us and find out why we have continued to be successful for more than 27 years and are recognized as the trusted leader in small business insurance.
